Master the Protective Put Strategy
A Protective Put combines ownership of an underlying asset with the purchase of a put option. It creates a defined floor beneath the position while allowing the investor to participate if the asset continues to rise.
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This course is temporarily unavailable and will return soon after it has been re-edited.
Set Up, Execute and Manage Protection
Study the market conditions where portfolio protection may be useful, then evaluate the underlying asset, put strike, expiration, premium cost, breakeven and position size.
- Understand Protective Put mechanics and terminology.
- Select an underlying asset, strike price and expiration.
- Calculate costs, breakeven and possible outcomes.
- Manage downside risk and position size.
Adjust the Hedge as Conditions Change
The curriculum progresses through rolling, strike adjustments, early exits, strategy combinations, market case studies, simulated trades and advanced portfolio applications.
- Roll protection to a later expiration.
- Adjust strikes as the underlying asset moves.
- Combine Protective Puts with other option structures.
- Develop a disciplined long-term hedging plan.
